Workers' Party MPs Sylvia Lim, Low Thia Khiang and Pritam Singh, as well as two other town councillors, have filed their defence to the lawsuit of Aljunied- Hougang Town Council (AHTC), which asked them to account for $33 million in payments.

In court documents filed on Tuesday, they argued that they could not be held personally liable under the law as they acted in good faith. They also said no improper payments were made and AHTC suffered no loss. Ms Lim and Mr Low also countered the claim that they had misled other town councillors in appointing a managing agent, saying the previous one, CPG Facilities Management, was unwilling to continue with the contract.

AHTC was directed to sue by an independent panel appointed to help recover improper payments.

The lawsuit is the latest development in a long-running saga arising from the town council's inability to submit a clean set of accounts since the Workers' Party won Aljunied GRC in 2011.

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